23 Dec 2008

Real estate agents barred

4:07 pm on 23 December 2008

Three real estate agents behind a property scam will never be allowed to sell houses again.

Philip Niall Ring has had his licence cancelled along with scheme ring leaders Philip Cavanah and Raghu Aryasomayahula.

The Real Estate Agents Licensing Board found they exaggerated sales prices on properties in order to borrow more money than the houses were worth from banks.

They worked at the Mt Albert branch of Barfoot & Thompson at the time, and are believed to have added almost $2 million to the values of four mortgage applications.

Cancellation of a real estate salesperson's certificate is the ultimate penalty available to the board.

Real Estate Institute NZ president Mike Elford says the penalty sends a clear message to the industry that fraudulent activity will not be tolerated.

The Serious Fraud Office is also investigating.